Thursday, September 28, 2023

Stanbic looks to climb new platforms

Stanbic Bank Botswana says it is geared and ready for increased platforms that are focused on managing the risk that comes with Information technology (IT).

Head of Corporate and Investment Banking (CIB) Stanbic Bank Botswana, Sheperd Aisam said the bank had invested in the Core Banking system over the last 2 years and that they have launched more products.

 “We are a leader and I invite the market and our clients to come and familiarise themselves with these new products and start using them,” he said

He is of the view that for CIB the technology is world class adding that they have electronic banking platform unparalleled to their competition and that they continue to improve. Aisam observed that Botswana has a well developed financial services sector of the likes of RSA, Namibia and Kenya and others. He said currently there is about P62 billion of savings in the market and that P13 billion is from households and he compared it to the credit extension which he said it’s higher in the personal segments meaning this needs to be corrected

“We have large pools of pension fund money looking for an asset class to earn yield from and safeguard the risks. These pools of capital can be transformational to Botswana and help fund our infrastructure and our development whilst creating a lot of pride as we would have grown out of our own means,” said Aisam.

He believes that banks, insurance companies and pension firms can develop long term savings products which can in turn be used by corporates to issue debt and equity on local exchanges. He added that there is need to develop the local currency capital markets to facilitate savings.  Aisam observed that there is huge potential in Botswana on the debt, equity and capital markets to facilitate instruments that advance a savings culture. 

“Currently most projects are funded out of disbursements from treasury and where there is debt it is foreign denominated so BWP yield curves suffer as consequence. We have to put the control of Botswana’s destiny back into her own hands,” he stated.

He believes that stimulation of the savings culture and the capital markets as a whole can also be looked at through the pension funds and changing the construct of the offshore vs. onshore components and allowing the local infrastructure projects to be funded using this capital and show potentially higher yield to the pension funds. 

“Global markets offers not only spot FX and risk management but also supports a strong trade focus as Botswana is a net importer,” said Aisam.

He stated that the bank is ready to assist clients to grow the capital base with IPOs and listings as well as pioneering and search for new growth areas and support the clients around Africa and be relevant in the market. He added that they will partner with industry to help create employment and opportunities that will see Botswana prosper despite commodity cycles and external pressures

“We have assisted in financing the Morupule power station with our strategic partner and SH ICBC landmark transaction,” he stated.


Read this week's paper